EIF promises €2.5bn of climate action investment

At the COP27 climate conference, the European Investment Fund (EIF) signed investments totalling €247m to enable five equity funds to back €2.5bn of climate action investment that the European Commission says will help to deliver the European Union’s climate and energy targets.

The new funding from the European venture capital and private equity financier contributes to the European Green Deal, the roadmap for Europe to become the first climate-neutral continent by 2050, and REPowerEU, the plan to rapidly reduce dependence on Russian fossil fuels and fast forward the green transition.

The signatures occurred at an EIF side event at COP27 about “The contribution of European Venture Capital, Private Equity and Infrastructure Funds to the EU Green Deal”.

The Commission says that signatures signal a clear direction of travel for the EIF as the Fund will play a “key role” in the delivery of the EIB Group’s contribution to REPowerEU, with a dedicated and additional envelope for EIF equity investments in funds to support innovative companies and the European Union’s (EU) path to net zero.

The EIF has committed to funding €28 million to the Growth Blue Fund I, a private equity fund focusing on the blue economy, and sustainable economic activities relating to the oceans. It will mainly invest in Portuguese small and medium companies across all sectors.

€30 million to PureTerra Ventures, a water technology early growth fund, which invests in small and medium enterprises across the EU scaling technologies to alter the usage, conservation and treatment of water.

€39 million to the Zintinus Fund I, a venture capital fund focused on growth-stage investments in sustainable food innovation across Europe, particularly alternative proteins, functional food, clean nutrition and food waste reduction.

€75 million to the SUMA Capital Climate Impact Fund III, an infrastructure fund targeting greenfield energy transition and circular economy projects predominantly in Spain.

€75 million to the Eiffel Transition Infrastructure Fund, a fund designed to provide equity bridge financing for renewable energy infrastructure assets in Europe.

Commissioner for Economy, Paolo Gentiloni, said: “The green transition must be accelerated and cannot be delayed. The InvestEU programme seeks to mobilise private investments to help drive the support needed to deliver that transition.

“The agreements signed are clear evidence of this, as well as of InvestEU’s role in helping to make sustainable investment projects across the EU a reality.”

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“JSSI is extremely well positioned to further its position in the private aircraft maintenance sector by leveraging its 30-year history in the industry.

“We are closely aligned with GTCR on how to create meaningful value and the JSSI team is poised to embark on its next chapter of growth.”

Craig Bondy, a managing director at GTCR, added, “Since our investment in 2020 we have worked closely with Neil to accelerate JSSI’s growth, including completing two key acquisitions to significantly grow the company’s maintenance tracking software business and deliver advanced solutions to a wider cross section of the business aviation community.

“Genstar’s investment is a testament to the hard work of the JSSI team and the value proposition they deliver to customers.”

The deal is Genstar’s second this week, following its agreement to buy tech insurance, repair and replacement specialist Likewize.

Genstar raced to an $11.7bn close for its tenth fund last year – a huge increase on the already weighty $5.5bn Fund IX it closed in 2019.

Source: Circular Online

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